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houses of manufacturers which have a value of $4,299,822.36, and bulk stock stored in Federal warehouses with a value of $84,076,958.32. The reports of the Office of Emergency Planning, the Department of Health, Education, and Welfare, and the General Services Administration in the appendix set forth additional information on the hospital and medical programs. Fallout Shelter program

The Department of Defense reports that the fiscal year 1967 was the sixth year of continuous progress and growth of the nationwide fallout shelter system. Fallout shelter space has been located for approximately 160 million persons. Space for over 92 million persons has been marked, and space for over 47 million persons has been stocked for 14 days. The community shelter planning program is designed to develop procedures in each community for making efficient use of available protection against radioactive fallout. Projects covering 44 million persons were underway at the end of the fiscal year. Civil defense is considered to be an essential element of continental defense, and military support is an important element of civil defense. However, military assistance is not intended to replace civil participation in civil defense operations, but to complement it.

General Services Administration/Civil Defense depots receive, store, service, and distribute shelter survival commodities as requested by the Department of Defense. Distribution to licensed fallout Shelter locations from these depots during the fiscal year included 31.8 million pounds of foods, 754,706 water drums, 925,503 polyethylene water drum liners, 39,025 medical kits, 124,536 sanitation kits, and 2,268 ventilation kits.

The Department of Housing and Urban Development reports that, in cooperation with the Office of Civil Defense, HUD has accelerated its efforts to encourage the inclusion of fallout Shelter protection in HUD-assisted construction activities particularly in connection with the community shelter program. Three joint OCD-HUD working committees have been established to explore and improve cooperative efforts in this and related fields.

For the protection of personnel, the national shelter policy has been applied to Federal Reserve buildings since 1958. Preparations to provide reasonable assurance that the Federal Reserve Board and Federal Reserve banks will be able to function in the event of an attack have been completed, the Board reported. During fiscal year 1967, shelter supplies were inspected and replaced as necessary, emergency equipment was tested periodically, and shelter accommodations were improved where practicable.

Home fallout protection is included in the rural civil defense information and protection program of the Department of Agriculture. The Department's cooperative extension service, under contract with the Office of Civil Defense, sponsored 27,158 meetings in fiscal year 1967 which dealt in part with fallout protection for farm and rural people. The meetings were attended by over a million people.

Personnel protection in wartime is regarded as a major problem by the Federal Aviation Administration. While facility defense plans have been completed for many of FAA's essential facilities, FAA reports adequate readiness plans cannot be prepared for those facilities lacking radiologically protected operating space because of the provisions of section 303 of the Independent Offices Appropriation Acts of 1962 and 1963. Unless suitable personnel protection is available, many FAA facilities such as airport traffic control towers would cease to function in a hostile radiological environment, the agency reported. Radiological monitoring

The inventory of radiological instruments in the depots maintained by the General Services Administration for the Office of Civil Defense was valued at $17.6 million at the end of the fiscal year, an increase of $1.1 million during the year. GSA checks the operability and reliability of these instruments before making distribution on a loan or grant basis to State and Federal agencies for training and monitoring. Radiological monitoring stations manned by employees of the Department of Agriculture numbered 5,900 at the end of the fiscal year, and approximately 13,950 employees have been trained to operate stations in the event of nuclear attack. These employees are in the Agricultural Research Service, Consumer and Marketing Service, Forest Service, and the Soil Conservation Service. The Department of Defense reports that during the past year there was an improvement and expansion in the nationwide monitoring and reporting systems. The Federal Aviation Administration continued to develop radiological monitoring capability at all traffic control and systems maintenance facilities. FAA continued its participation in the national fallout monitoring network. All manned FAA facilities are to report radiation intensities as a part of this program. The Department of Health, Education, and Welfare reports that the radiological monitoring course has increased the number of monitors available to local civil defense directors by 22,427, and that 9.488 additional monitors have completed special refresher training. HEW states that the need for monitors grows each year as new shelters are located and staffed, and new monitors need to be trained each year to replace those lost by population movement and retirement. The Federal Highway Administration, which has the responsibility of developing a national program for radiological monitoring to protect the traveling public, reports that about 1,050 of their employees and approximately 29,000 State highway department employees have been trained as radiological monitors. Radiation research

The Department of Agriculture reports that radiation research during the year as related to food and agriculture included various aspects of radiation effects on animals, plants, soils, and food. This research is carried out in cooperation with other Federal agencies and State agricultural experiment stations. Twenty-three projects are reported as being supported by Federal-grant funds administered by the Department of Agriculture throngh its Cooperative State Research Service, and 15 are financed with State money. Military contract awards

Total military procurement of $44,633 million in the fiscal year 1967 was an increase of $6,389 million over the $38.243 million volume in the fiscal year 1966 as military procurement related to Southeast Asia continued to rise. Contract awards to large business firms increased by $4,979 million and to small business firms by $804 million.

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There were also increases of $285 million for contract awards outside the United States, $237 million in awards to or through other Government agencies, and $84 million in awards to educational and nonprofit institutions.

Fiscal year 1967 procurement of over $44.6 billion established a new high since the peak Korean war fiscal year 1952 when military procurement totaled $43.6 billion. Following Korea, postwar cutbacks and adjustments reduced net procurement to $13.3 billion in the fiscal year 1954, after which there was a steady increase in annual procurement to $25.3 billion in the fiscal year 1959. Declining to $23.7 billion in the fiscal year 1960, procurement again increased in each of the next 3 years reaching a total of $29.4 billion in the fiscal year 1963. Following declines to $28.8 billion in the fiscal year 1964 and to $28 billion in fiscal year 1965, the increase in military activity in Southeast Asia brought about a sharp upswing in procurement which reached $38.2 billion in the fiscal year 1966 and over $44.6 billion in the fiscal year 1967.

Small business firms received $8,073 million in military prime contract awards in the fiscal year 1967, an increase of $804 million from the fiscal year 1966. This amounted to 20.3 percent of the value of military prime contracts awarded to small business in the fiscal year 1967, compared with 21.4 percent in the fiscal year 1966. This does not include procurement of $287,680,000 for procurement from small business concerns for civil functions in the fiscal year 1967, and $342,764,000 in the fiscal year 1966. When consideration is given to small business awards for civil functions and military prime contract awards, small business received 20.6 percent of total defense procurement in the fiscal year 1967, compared with 21.8 percent in the fiscal year 1966. .

Total military procurement from U.S. business firms for work performed in the United States was $5,783 million higher than in the fiscal year 1966, with each of the three principal categories of procurement showing an increase in dollar volume. Contracts for major hard goods accounted for 64.9 percent of the total in the fiscal year 1967, compared with 63 percent in the fiscal year 1966. Aircraft showed the greatest percentage change, from 22 percent of total in the fiscal year 1966 to 24.3 percent in the fiscal year 1967. Missiles, which have been declining in ratio to total since the fiscal year 1962, declined from 12.1 percent in the fiscal year 1966 to 10.9 percent in the fiscal year 1967.

. The largest increase in dollar value was aircraft ($2,167 million). Other programs having substantial increases were: ships ($732 million); ammunition ($724 million); services ($660 million); and electronics and communications equipment ($558 million). Other increases ranged from $79 million for subsistence to $371 million for actions of less than $10,000. There was a decrease of $117 million in tank-automotive procurement and a decrease of $105 million in textiles, clothing and equipage. The decline in the tank-automotive program represented a decrease of $158 million for noncombat vehicles, and was partially offset by a $41 million increase for combat vehicles.

The value of awards for research, development, test, and evaluation work, excluding awards for work outside the United States and orders to other Government agencies, increased from fiscal year 1966 by $738 million to a total of $6,015 million in the fiscal year 1967. Although there was an increase in the dollar volume for the fiscal year 1967,

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there was a decline in the ratio to total procurement. For the fiscal year 1967, research, development, test, and evaluation work comprised 14.8 percent of total military procurement compared with 15.2 percent for the fiscal year 1966. This decline was the sixth consecutive annual decrease in the ratio of R.D.T. & E. work to total procurement.

Between fiscal year 1957 and fiscal year 1963 there was an annual increase in the dollar value of awards for research, development, test, and evaluation work. Following 2 years of decline, awards for R.D.T. & E. procurement increased to $5,277 million in the fiscal year 1966 and to $6,015 million in the fiscal year 1967.

Small business firms in the fiscal year 1967 acquired 4 percent of all prime contracts for research, development, test, and evaluation work, receiving 25.2 percent of all research contracts, 3.1 percent of the development contracts, and 7.1 percent of the contracts for management and support.

Preliminary data of the Department of Defense for the fiscal year 1967 shows an increase in the number of contractors and dollar value of commitments for subcontract work. Commitments reported by 798 large military contractors totaled $15,341 million in the fiscal year 1967, an increase of $3,178 million (20.7 percent) from the $12,163 million reported by 735 large contractors in the fiscal year 1966. Small business firms received 43.3 percent of the total committed for subcontract work in the fiscal year 1967, compared with 41.9 percent in the fiscal year 1966. Materials research

This committee has received a letter dated September 7, 1967, from Dr. Donald F. Hornig, Chairman of the Federal Council for Science and Technology, and Director of the Oflice of Science and Technology, Executive Office of the President, relating to the progress made in materials research. The letter and attached report from Dr. Hornig follows: FEDERAL COUNCIL FOR SCIENCE AND TECHNOLOGY,

Executive Office Building,

Washington, D.C., September 7, 1967.
Chairman, Joint Committee on Defense Production, Congress

of the United States.
DEAR MR. CHAIRMAN: This is in reply to your letter of July
19 requesting information on materials research and related
information for inclusion in the 17th Annual Report of the
Joint Committee on Defense Production.

My letter of last August outlined a survey of the total
materials research and development efforts of the United
States and an outline of the survey was enclosed with that
report. I am pleased to report that over 90 percent of the 33
carefully selected companies for study have replied to that
questionnaire. The Government sales of these companies
amounted to $10.6 billion or about one-third the total of
DOD, NASA, and AEC in 1965. The direct materials re-
search and development of these companies was near $100
million which is in excellent agreement with a previous
Coordinating Committee on Materials Research and Devel-

opment Government survey of 1964. It appears that the total of end-item development and independent research and development (ASPER-15) is about $400 million. Added to identifiable funds, this would make a total of $620 million spent in 1964 for materials research and development in this country. This figure does not include State-supported or industrial-sponsored work.

The CCMRD endorsed the National Bureau of Standards presentation on the subject of corrosion, a copy of which is enclosed. This area of materials research and development suffers for lack of glamor. However, the problems are very real and it is estimated that corrosion losses in this country amount to $10 billion a year of which the Government must pay $1 billion directly.

The activities of CCMRD have been extended to look at all materials problems of all Government agencies. It is expected that a complete report of these activities will be included in your 18th annual report. It is a pleasure to be able to tell you of these interesting developments of the Coordinating Committee Materials Research and Development of the Federal Council. Sincerely yours,









A group

from the National Bureau of Standards attended the February 14, 1967, meeting of the CCMRD and presented a proposal for the establishment of a Corrosion Center at NBS.

The proposal evolved at NBS in response to Secretary of Commerce John T. Connor's expression of interest in the Bureau making a positive proposal of steps to deal with the national problem of corrosion loss to the U.S. public of more than $10 billion a year, with direct loss to the Federal Government of over $1 billion a year.

Corrosion was identified as one of the major factors limiting progress in many national efforts. This was said to be true in (1) military operations, (2) the space program, (3) the SST development, (4) water desalination, (5) nuclear power development, (6) deep submergence vehicles, and (7) health program.

Two of the above national efforts were described in some detail: (1) the mach 3 SS-transport, and (2) water desalination.

In the case of the mach 3 SS-transport, there are two possible skin materials: stainless steel or titanium-alloy. Titanium-alloy is lighter and stronger and one would prefer it to stainless steel, but aircraft must have long life to be

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